ISCR Case 14-04272.h1

Case Headnote

ISCR Case No. 14-04272.h1

deniedAug 24, 2016· Hon. Martin H. Mogul· hearing

Summary

A 43-year-old married woman with two children was denied a security clearance due to significant financial difficulties and issues of personal conduct, specifically under Guideline E (Personal Conduct) and Guideline F (Financial Considerations). The applicant admitted to substantial delinquent debts totaling over $228,000, comprising multiple student loans ranging from $3,007 to $118,016, and two other delinquent accounts for $152 and $75.

Beyond financial concerns, the applicant had a history of dishonesty regarding her criminal record. In May 1998, she was charged with Larceny, Fraud, and/or False Statements for removing a laptop valued at approximately $1,779 from a store without payment, then attempting to return an empty box for a replacement. She was also arrested and charged with Theft (between $300 and $500), pled guilty, was fined, and sentenced to five years of probation, which concluded in September 2008.

The applicant failed to disclose these incidents on security clearance forms. On a Standard Form 85P executed in September 2006, she falsely answered "No" to a question about arrests, charges, or convictions in the last seven years. Similarly, on an Electronic Questionnaires for Investigations Processing (e-QIP) executed in March 2013, she falsely answered "No" to a question about being on probation or parole in the last seven years. The judge found that the applicant failed to demonstrate sufficient mitigation of the security concerns raised, leading to the denial.

Why the Applicant Was Denied

The applicant has significant delinquent debts totaling over $228,000, indicating an inability to manage financial obligations.
The applicant failed to provide truthful information on security clearance applications regarding her criminal history and probation status.

Conditions Referenced

Disqualifying

AG ¶ 19(a)appliedInability or Unwillingness to Satisfy Debts
AG ¶ 19(c)appliedHistory of Not Meeting Financial Obligations
AG ¶ 16(a)appliedDeliberate Omission, Concealment, or Falsification of Relevant Facts

Mitigating

AG ¶ 20(b)rejectedConditions That Resulted in the Financial Problem Were Largely Beyond the Person’s ControlThe applicant did not provide evidence of payments toward the majority of her debts.
AG ¶ 20(c)rejectedThe Individual Has Received Counseling for Financial IssuesNo clear indication that the financial problems are resolved.
AG ¶ 20(d)rejectedGood-faith Effort to Repay Overdue CreditorsThe applicant has not established a consistent history of resolving debts.

Key Rule Quoted

“The protection of the national security is the paramount consideration.”

Procedural Posture

SOR issuedDec 2, 2014
Answer filedFeb 5, 2015Requested decision on written record.
Hearing held—No hearing; decided on written record.
Decision dateAug 24, 2016

Cite For

Financial Difficulties as a Disqualifying Factor Under Guideline F
Dishonesty in Security Clearance Applications Under Guideline E
Failure to Demonstrate Mitigation of Financial Issues and Personal Conduct Concerns

Editorial summary generated for research. Not legal advice; not a prediction. Verify against the full decision before relying on any quoted language.

¶	Allegation	Finding	Conduct	Concealed Issue	Response	Disqualifying (¶16)	Mitigating applied (¶17)	Mitigation
2.a	It is alleged in the SOR that Applicant was charged with Larceny, Fraud and/or False Statements in May 1998 when she removed a laptop computer valued at approximately $1,779 from a store without rendering payment. It is further alleged that Applicant later returned with an empty box stating that the laptop she had purchased was not in the box so she requested that she be supplied with another laptop.	For Applicant	Questionable Judgment General	—	Denied	(a) deliberate omission, concealment, or falsification on a security form	—	—
2.b	It is alleged in the SOR that Applicant was arrested and charged with Theft in an amount of between $300 and $500, and that she pled guilty and was fined and sentenced to five years of probation, which ended in September 2008.	Against Applicant	Questionable Judgment General	—	Admitted	(a) deliberate omission, concealment, or falsification on a security form	—	—
2.c	It is alleged in the SOR that Applicant failed to provide truthful and candid answers on a Standard Form 85P, executed by her on September 8, 2006, in which she was asked, 'In the last 7 years, have you been arrested, charged with, or convicted of any offenses?' Applicant responded, 'No,' to this question when, it is alleged, she had been charged in the past seven years with Larceny, Fraud and/or False Statements as set forth in subparagraph 2.a., above.	For Applicant	Lack of Candor in InterviewFOUND DELIBERATE	Criminal Conduct	Denied	(a) deliberate omission, concealment, or falsification on a security form	—	—
2.d	It is alleged in the SOR that Applicant failed to provide truthful and candid answers to questions asked under Section 22 of an Electronic Questionnaires for Investigations Processing (e-QIP), executed by her on March 20, 2013. (Item 5.) The question asked whether in the last seven years Applicant has been on probation or parole or whether Applicant is currently on probation or parole. Applicant answered, 'No,' to this question and it is alleged that she deliberately failed to disclose that she had been on probation until 2008, as set forth in subparagraph 2.b., above.	Against Applicant	Lack of Candor in InterviewFOUND DELIBERATE	—	Denied	(a) deliberate omission, concealment, or falsification on a security form	—	—

Allegation

Finding

Conduct

Concealed Issue

Response

Disqualifying (¶16)

Mitigating applied (¶17)

Mitigation

2.a

It is alleged in the SOR that Applicant was charged with Larceny, Fraud and/or False Statements in May 1998 when she removed a laptop computer valued at approximately $1,779 from a store without rendering payment. It is further alleged that Applicant later returned with an empty box stating that the laptop she had purchased was not in the box so she requested that she be supplied with another laptop.

For Applicant

Questionable Judgment General

—

Denied

(a) deliberate omission, concealment, or falsification on a security form

—

2.b

It is alleged in the SOR that Applicant was arrested and charged with Theft in an amount of between $300 and $500, and that she pled guilty and was fined and sentenced to five years of probation, which ended in September 2008.

Against Applicant

Questionable Judgment General

—

Admitted

(a) deliberate omission, concealment, or falsification on a security form

—

2.c

It is alleged in the SOR that Applicant failed to provide truthful and candid answers on a Standard Form 85P, executed by her on September 8, 2006, in which she was asked, 'In the last 7 years, have you been arrested, charged with, or convicted of any offenses?' Applicant responded, 'No,' to this question when, it is alleged, she had been charged in the past seven years with Larceny, Fraud and/or False Statements as set forth in subparagraph 2.a., above.

For Applicant

Lack of Candor in InterviewFOUND DELIBERATE

Criminal Conduct

Denied

(a) deliberate omission, concealment, or falsification on a security form

—

2.d

It is alleged in the SOR that Applicant failed to provide truthful and candid answers to questions asked under Section 22 of an Electronic Questionnaires for Investigations Processing (e-QIP), executed by her on March 20, 2013. (Item 5.) The question asked whether in the last seven years Applicant has been on probation or parole or whether Applicant is currently on probation or parole. Applicant answered, 'No,' to this question and it is alleged that she deliberately failed to disclose that she had been on probation until 2008, as set forth in subparagraph 2.b., above.

Against Applicant

Lack of Candor in InterviewFOUND DELIBERATE

—

Denied

(a) deliberate omission, concealment, or falsification on a security form

—

¶	Allegation	Finding	Type	Response	Disqualifying (¶19)	Mitigating applied (¶20)	Mitigation
1.a	This overdue debt is cited in the SOR for a delinquent student loan account in the amount of $35,361. $35,361	Against Applicant	Student Loan Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.b	This overdue debt is cited in the SOR for a delinquent student loan in the amount of $15,245. $15,245	Against Applicant	Student Loan Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.c	This overdue debt is cited in the SOR for a delinquent student loan in the amount of $28,105. $28,105	For Applicant	Student Loan Debt	Admitted	—	—	—
1.d	This overdue debt is cited in the SOR for a delinquent student loan in the amount of $6,893. $6,893	Against Applicant	Student Loan Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.e	This overdue debt is cited in the SOR for a delinquent student loan in the amount of $118,016. $118,016	For Applicant	Student Loan Debt	Admitted	—	—	—
1.f	This overdue debt is cited in the SOR for a delinquent student loan in the amount of $3,281. $3,281	For Applicant	Student Loan Debt	Admitted	—	—	—
1.g	This overdue debt is cited in the SOR for a delinquent student loan in the amount of $3,891. $3,891	Against Applicant	Student Loan Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.h	This overdue debt is cited in the SOR for a delinquent student loan in the amount of $3,007. $3,007	For Applicant	Student Loan Debt	Admitted	—	—	—
1.i	This overdue debt is cited in the SOR for a delinquent account in the amount of $152. $152	For Applicant	Unspecified Financial	Denied	—	—	—
1.j	This overdue debt is cited in the SOR for a delinquent student loan in the amount of $14,625. $14,625	Against Applicant	Student Loan Debt	Admitted	(a) inability to satisfy debts (c) a history of not meeting financial obligations	—	—
1.k	This overdue debt is cited in the SOR for a delinquent account in the amount of $75. $75	For Applicant	Unspecified Financial	Denied	—	—	—

Allegation

Finding

Type

Response

Disqualifying (¶19)

Mitigating applied (¶20)

Mitigation

1.a

This overdue debt is cited in the SOR for a delinquent student loan account in the amount of $35,361.

$35,361

Against Applicant

Student Loan Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.b

This overdue debt is cited in the SOR for a delinquent student loan in the amount of $15,245.

$15,245

Against Applicant

Student Loan Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.c

This overdue debt is cited in the SOR for a delinquent student loan in the amount of $28,105.

$28,105

For Applicant

Student Loan Debt

Admitted

—

1.d

This overdue debt is cited in the SOR for a delinquent student loan in the amount of $6,893.

$6,893

Against Applicant

Student Loan Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.e

This overdue debt is cited in the SOR for a delinquent student loan in the amount of $118,016.

$118,016

For Applicant

Student Loan Debt

Admitted

—

1.f

This overdue debt is cited in the SOR for a delinquent student loan in the amount of $3,281.

$3,281

For Applicant

Student Loan Debt

Admitted

—

1.g

This overdue debt is cited in the SOR for a delinquent student loan in the amount of $3,891.

$3,891

Against Applicant

Student Loan Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.h

This overdue debt is cited in the SOR for a delinquent student loan in the amount of $3,007.

$3,007

For Applicant

Student Loan Debt

Admitted

—

1.i

This overdue debt is cited in the SOR for a delinquent account in the amount of $152.

$152

For Applicant

Unspecified Financial

Denied

—

1.j

This overdue debt is cited in the SOR for a delinquent student loan in the amount of $14,625.

$14,625

Against Applicant

Student Loan Debt

Admitted

(a) inability to satisfy debts

(c) a history of not meeting financial obligations

—

1.k

This overdue debt is cited in the SOR for a delinquent account in the amount of $75.

$75

For Applicant

Unspecified Financial

Denied

—

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Case Profile

Summary

Why the Applicant Was Denied

Conditions Referenced

Key Rule Quoted

Procedural Posture

Cite For

Full decision

DEFENSE OFFICE OF HEARINGS AND APPEALS

HEARING

APPEARANCES

STATEMENT OF CASE

FINDINGS OF FACT

POLICIES

ANALYSIS

WHOLE PERSON CONCEPT

FORMAL FINDINGS

CONCLUSION